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5/29/15
1
Lawrence A. Melton CEO/President
The Building People
Smart Buildings: Lower Operating Costs
Defining Smart Buildings
Smart buildings are structures that provide specific building services that: • Provide comfort, security and
quality space for occupants to be produc<ve
• Reduce overall environmental impact and improve sustainability • Use technology to reduce overall cost of opera8ng and maintaining the building
Proprietary & ConfidenCal © 2015 The Building People, LLC
5/29/15
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IT in our building systems has already “happened” to us!
• Nearly every control system in your existing buildings use networks (yuck!)
• Increased complexity
• CIO’s now require security procedures
• Technology spending is on the rise!
Proprietary & ConfidenCal © 2015 The Building People, LLC
Decades in the making….
Proprietary & ConfidenCal © 2015 The Building People, LLC
5/29/15
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$7 $9 $11 $14
$17
2015 2016 2017 2018 2019
Es<mated Smart Building Technology Investments
BILLIONS ($USD
)
Proprietary & ConfidenCal © 2015 The Building People, LLC
Smart Buildings
Over $10 B
illion in gro
wth over ne
xt 4 years!
$4.00
$4.20
$4.40
$4.60
$4.80
$5.00
$5.20
$5.40
$5.60
$5.80
$6.00
Ope
ra<o
ns $/SF
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Energy Con
sump<
on (m
btus)
GAP
“Energy efficiency….but where’s the savings?”
Energy Efficiency vs. OperaCons Costs
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Efficiency with Smart Buildings
$27,000 $45,000 $90,000 $180,000
$86,000 $129,000 $215,000
$430,000
$860,000
200,000 300,000 500,000 1,000,000 2,000,000
Smart Building Annual Savings Labor Savings Energy Savings
Gross Square Footage of Building
($USD
)
Proprietary & ConfidenCal © 2015 The Building People, LLC
($.09 Energy Efficiency) + ($0.43 Labor Efficiency)
= $0.52 Per GSF in Savings
*Human Factor • Operator Error • Operator Unawareness • Operator Interference • Operator Indifference
Sogware
Hardware
Unspecified
Hardware & Sogware
(Technology)
Operational “unawareness”
(Buildings)
Behavior (People)
Costs: Targeted OpportuniCes
* Iowa Energy Center Proprietary & ConfidenCal © 2015 The Building People, LLC
5/29/15
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Evolved POLICY to increase performance
Real-‐Cme VISIBILITY into performance Granular CONTROL over consuming systems
• Enhanced customer experience, • Increased opera8onal effec8veness • Energy efficiency & sustainability
+
=
FoundaConal ObjecCves for Smart Buildings:
Visibility
Control
Policy
+
Proprietary & ConfidenCal © 2015 The Building People, LLC
Open Non-‐proprietary communicaCon between building controls that give operators greater flexibility to manage systems and reduce service costs
Converged Common sense eliminaCon of overlapping controls infrastructure such as conduit, closets, and cabling and networking
Normalized Different controls manufacturers, or even disparate systems, can share data, allowing for more flexibility and management control NORMALIZED
Smart Building FoundaConal Principles
Proprietary & ConfidenCal © 2015 The Building People, LLC
5/29/15
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Smart Buildings Guide
WHY SMART BUILDINGS? Buildings systems technology changed at the manufacture level in a material way, which over 8me has had a ripple effect on the industry. Gaps: Genera<onal skill gaps, proprietary systems and disparate efforts inside the organiza<on Risks: Risk of cyber security and rising cost structure for capital expenses and opera<ng expenses OpportuniCes: Missing technology opportuni<es that existed in the marketplace
Proprietary & ConfidenCal © 2015 The Building People, LLC
Smart Buildings Guide
HOW DO YOU ADDRESS THIS? Address the en8re organiza8on, enterprise architecture and value chain Technology: Embrace IT and cyber security, develop big data architecture
Buildings: Create new building standards and engage the marketplace
People: Modernize training, industry experts for regional support, internal alignment, new naConal vendor requirements
Proprietary & ConfidenCal © 2015 The Building People, LLC
5/29/15
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Smart Buildings Guide
WHAT IS THE IMPACT? Complete organiza8onal design for Smarter Buildings Alignment: Bringing the key stakeholders together (FaciliCes, IT, Design & ConstrucCon) Standards: Embrace naConal system standards to improve program management delivery
Interoperability: Ensuring exisCng legacy systems are compaCble to architecture by design, maximizing the use of their data
Proprietary & ConfidenCal © 2015 The Building People, LLC
TECHNOLOGY SERVICES
REAL ESTATE SERVICES
ENERGY & SUSTAINABILITY
SERVICES
PROJECT MANAGEMENT
SERVICES
FACILITIES MANAGEMENT
SERVICES
FINANCIAL MANAGEMENT
SERVICES
Old Way Organiza8onal Dis-‐alignment
Data
Data
Data
Data
Data
Data
Proprietary & ConfidenCal © 2015 The Building People, LLC
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Old Way Disparate System
Management / AdministraCve
Custodial
Engineers & Operators
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Consolidated Data/Analy<cs Business Process Automa<on
Technology Services
Real Estate Services
Financial Management
FaciliCes Management
Energy & Sustainability
Project Management
People are the most important part of
preparing for smart, connected buildings.
The objec<ve is to enable be=er decisions, propagate new norms,
and drive educa<on throughout your
organiza<on.
New Way Organiza8onal Alignment
Proprietary & ConfidenCal © 2015 The Building People, LLC
5/29/15
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New Way Open & Converged Systems
Management / AdministraCon
Custodial Engineers / Operators
Proprietary & ConfidenCal © 2015 The Building People, LLC
Summary • Smart Buildings won’t put won’t put anyone
out of a job… Not knowing smart buildings will! • Labor cost savings provide the greatest
opportunity to achieve efficiency in your smart building!
• Smart Buildings is happening to you now,
wai8ng is not an op8on!
• Connec8ng you building, is not crea8ng a smart buildings strategy… it take all 3 pillars: Technology, Buildings, and People!
Proprietary & ConfidenCal © 2015 The Building People, LLC